Audit Partner Specialization and Audit Fees: Some Evidence from Sweden

• 成果类型: Article
• 署名作者: Zerni, Mikko
• 署名单位: University of Vaasa
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/j.1911-3846.2011.01098.x
• 发表日期: 2012
• 页码: 312-+
• 关键词: industry expertise; RISK-MANAGEMENT; AGENCY COSTS; office size; QUALITY; association; MARKET; ACCOUNTABILITY; determinants; Reputations

摘要

Utilizing a data set on the client portfolios of the Big 4 audit partners in Sweden, this study examines auditor specialization and pricing at the individual partner level. Consistent with the view that there are returns on investing in specialization, the analysis of audit fees indicates that both audit partner industry specialization and specialization in large public companies are recognized and valued by financial statement users and/or by corporate insiders, resulting in higher fees within these engagements. The highest fees are earned by engagement partners who are both industry and public firm specialists. Collectively, the findings of this study indicate that part of an auditor's deep expertise is not transferable across audit partners within an audit firm but is instead inseparably tied to the individual audit partner's private human capital.